Buenos Aires Real Estate

The north of Buenos Aires, it was historically the zone of the city most estimated to live and certainly for real-estate business. The best constructions, the most luxurious towers, the projects of more resonance were predestined to have one point of reference in the city, the north.

On the other hand, the south after the yellow fever epidemic exiled all the wealthy families that were living in the areas surrounding San Telmo in the middle of the 19th century. Little by little was losing the charm, furthermore in the southern part, where there was an industrial pole that was used as base to the big factories of Buenos Aires and the surroundings. With these precedents, the south was devaluated compare to the lucky north.
For some years, the south is generating another interest, Puerto Madero probably has been the key to put attention and to see that beyond the Belgrano Avenue there is much to do, for construction and new urban options.

The situation we commented in previous post, about the north in relation to reach a plateau in terms of construction is turning the south in the main protagonist of the next years. The relocation of the civic center and the construction of new subways from north to south are showing that it is time of develop the south part of the city. New and important real estate business will be news in short or medium term.

Even though its plateau, the north hasn’t been the center of important investment opportunities, Palermo, Recoleta, Retiro and Belgrano are its main neighborhood.

If we have to make a quick balance of the last few years about the inversion in real estate business, we will be able to say that the growth is the main characteristic.

Rates and reality show that Argentinean economic growth has no interruption during these years and it is also being significant, even more than neighboring countries such The Economist point out in a recent article; it indicates a 9% increase in contrast with Brazilian economy. Tourism peak is another beneficial factor that influences in this development, showing a progressive increase as a tendency, it adds year by year more foreign visitants. Also, building industry shows a stage of plateau (for local reason) that motivates the increase of the square meter of construction for certain areas, seeming to be the trend within short term in Buenos Aires. Specialists think that the increase in the price of the square meter is an opportunity of investment to take into account, the same happens with the renting apartment segment. The supply revalues each property, an equation that is profitable to whom invested and also to invest nowadays considering the prediction of this tendency.

“Las Cañitas” and “La Imprenta” for example are ideal areas to invest in Palermo; it has an important supply of new buildings (a total of 42 constructions) most of them are residential buildings; this is a thing that must be pointed out. In 2005 the price of the square meter was approximately of USD 1450; in 2006 it was of USD 1600; in 2007 it was of USD 1980, finally in 2008 it reaches USD 2350. This shows an increase of the 18% in the last year. “Las Cañitas de Palermo” is a good opportunity of investment being also profitable in other neighborhoods of Buenos Aires.

Those who are interested in renting apartments, will be favored because the return rates are the highest in the world, the lodging demand of foreign people is evident, the tourism boom, the benefit in the currency and the life standard of the city, make foreign people (specially Europeans and Americans) to invest in Buenos Aires’s properties; not only to live in but also as a business.

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